Sahara moves tribunal against Sebi for deadline extension

In another legal twist, Subrata Roy-led Sahara group today moved the Securities Appellate Tribunal (SAT) against market regulator Sebi over the latter not extending the deadline till 31 January for submission of documents of over three crore investors who invested in schemes of two Sahara group companies, Sahara India Real Estate Corporation ( SIRCL) and Sahara Housing Investment Corporation ( SHICL) .

On Monday, the SAT questioned Sebi on its reluctance to accept documents submitted by Sahara and directed the regulator to submit its reply within 2 weeks. SAT had observed that Sebi should considered acceptance of the documents keeping the interest of investors in mind.

SAT questioned Sebi on its reluctance to accept documents submitted by Sahara and directed the regulator to submit its reply within 2 weeks.

The case, has been adjourned till 20 December. Sebi has been asked to file an affidavit on the maintainability of the plea and also explain its refusal to accept documents.

Earlier, the Supreme Court had refused to hear its submission seeking more time for compliance of the court's order directing refund of the money raised. The apex court also made it clear that Sebi can take action against Sahara if it does not provide details about investors from whom the company had raised Rs 24,000 crore.

The apex court had on August 31 directed the two Sahara group firms to refund the money within three months with 15 percent interest per annum for violating norms in raising funds from the public. Sebi had moved the court after Sahara failed to meet the deadline ofSeptember 10for providing the necessary documents.

The failure to refund will open up the possibility of court-directed action against the group.